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External forces driving Vancouver housing prices: research

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Summary

Factors include demographics, the economy and mortgage rates finds research from SFU

Detached housing prices have risen by as much as 20 or 30 per cent year-over-year in parts of Metro Vancouver

VANCOUVER (NEWS 1130) – Unless the government intervenes, Vancouver housing prices will continue their rapid ascent — that’s according to some new research from SFU. The findings are also highlighting the influence of so-called external forces.

Looking through data from Open Vancouver — an online catalogue of city information — Saeed Soltani and his colleague Bita Shadgar looked through the factors influencing our local real estate market.

Demographics, the economy at large and mortgage rates and they found an unnamed external force was the most influential ingredient in creating sky-high prices.

“People say it’s for an investment but we can’t say for sure based on the research.”

The pair found external forces were responsible for a reported 75 per cent jump in local real estate prices. “Because we didn’t have any information about the ownership of properties, so we don’t know what those remained 75 per cent are.”

Throughout the region, detached housing prices have risen by as much as 20 or 30 per cent year-over-year in some municipalities.